PSE constitute an important segment of the Indian economy. Their contribution to the national economy is phenomenal. The opening of Indian economy has radically transformed the market dynamics in India with private sector playing a greater role in shaping the industrial landscape. As a consequence, the PSEs have been exposed to competition from domestic as well as multi-national corporations.

Today, becoming global is not an option for the PSEs, it has become a compulsion as economies around the world are integrating with the common market place. It has become imperative to formulate strategies in the face of current period of economic slowdown and growth crisis. Post liberalisation, Indian PSEs has focused on becoming profitable and more efficient. They have adapted well to the changing market dynamics and have leveraged the business opportunities arising from liberal economic policies. PSEs are now adopting business models and transformation strategies such as joint ventures, mergers and acquisitions, to compete on a level playing field with the private sector. Disinvestment has augmented the level of corporate governance in PSEs, it has let to greater degree of efficiency and performance